South Korean Officials Raid the Co-founder of Terraform Labs’ Office

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Terra Rebels Notifies LUNC Investors of a Scam Token
Terra Rebels Notifies LUNC Investors of a Scam Token

Daniel Shin, a co-founder of Terraform Labs, established Chai Corporation, which was searched by the Seoul Southern District Prosecutors’ Office.

It reportedly summoned Shin earlier this week as part of another inquiry into the sale of pre-issuance Luna tokens.

According to a report, Terraform Labs co-founder Daniel Shin’s (Shin Hyun-Seung) Chai Corporation, a payments technology company, was raided by the Seoul Southern District Prosecutors’ Office.

Shin not only launched Chai, but the company also collaborated with Terraform Labs to incorporate Terra’s won-pegged stablecoin KRT into its payment service.

According to the prosecution, the corporation allegedly launched the service using the client’s personal information without permission.

Shin Accused of Storing Pre-issuance Luna Tokens Without Notifying Investors

The authorities also summoned Shin earlier this week to investigate whether he had violated capital markets law. 

Shin was accused of keeping pre-issuance Luna tokens hidden from regular investors before selling them for $106 million.

It is one of several threads that authorities have pulled to figure out what transpired at Terraform Labs before the company’s demise in May when its US dollar-pegged stablecoin TerraUSD depegged. 

Approximately $40 billion in investor money was destroyed by the crash.

Shin has made an effort to disassociate himself from Terraform Labs and has asserted that he severed relations with both in 2020 to concentrate on Chai Corporation, which, according to the firm, has been operating independently from Terra since the first quarter of 2020.

Nevertheless, his house was searched in July due to Terra’s inquiry. On Oct. 6, he was scheduled to testify in front of the legislature, but the day before, he cancelled.

Do Kwon is Yet to be Apprehended

At the beginning of October, prosecutors made their first arrest in the case when they took down Yu, the head of Terraform Labs’ general business operations. 

They asserted that Yu operated bots to trade cryptocurrency and manipulate pricing.

A South Korean court later threw out the arrest warrant and questioned whether detention was warranted.

The man at the centre of everything has yet to be captured by authorities. 

Do Kwon of Terraform Labs left Singapore at some point after a warrant for his arrest was issued on September 14.

He may be in Europe right now, according to reports. Kwon asserted that the accusations against him are “politically motivated” and that he is not hiding.

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